According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. the market ceases to be efficient.
B. total surplus will decline.
C. deadweight loss will occur.
D. All of these are true.
D. All of these are true.
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The quantity of money held in response to interest rates is the
Nations with slower growth rates can "catch up" to rapidly growing countries by
A) using budget deficits as a long-run policy tool. B) adopting the technologies of the wealthier nations. C) pressuring the central bank to increase the money supply and reduce interest rates. D) raising the minimum wage. E) exporting more than it imports.
The size of the spending multiplier depends on the marginal propensity to consume (MPC)
a. True b. False Indicate whether the statement is true or false
By raising the legal reserve requirement, the Fed
a. increases the money supply b. decreases the discount rate c. buys bonds through open market operations d. seeks to influence fiscal policy e. restricts banks' abilities to make loans